25 January 2024
Mortgage Advice Bureau
(Holdings) plc
("MAB" or
the "Group")
Trading
Update
Mortgage Advice Bureau (Holdings)
plc (AIM: MAB1) today issues a trading update for the year ended 31
December 2023, ahead of publishing its final results on Tuesday, 19
March 2024.
In September 2023 the Board took a
cautious view on expected activity levels for Q4 2023 and hence the
outlook for the full year. Actual trading was better than
anticipated in Q4 2023 and the Board now expects the Group to
report an adjusted profit before tax that
is slightly ahead of the current market consensus.
UK Finance's latest estimate of
gross new mortgage lending for 2023 is £226bn[1], representing a 28% reduction on 2022.
Despite this difficult market, the Group increased its
revenue for the year by 4% to circa £239m.
As expected, the total number of advisers at
the year-end was down 4% to 2,158[2] (2022:
2,254), including 117 advisers at Fluent, with the average number
of mainstream[3] advisers during the year down 2%
to 1,940 (2022: 1,988). The number of mainstream advisers at
the year-end was down 8% to 1,918 (2022: 2,074).
Current Trading and
Outlook
The underlying level of demand for
home ownership and home moves remains strong. As the cost of fixed
rate mortgages started to reduce at the end of last year, we saw
early signs of increased purchase activity as well as re-financing.
This pick-up in mortgage volumes has continued into January,
with written volumes substantially higher than in January 2023 in
the aftermath of the mini-budget. Whilst uncertainty remains in the
wider political and geopolitical environment, current trading is
encouraging.
MAB remains in a very strong
position to capitalise on any market recovery and the inevitable
catch-up in house purchase transactions that will
follow.
Whilst no organic adviser growth has
been assumed for this year, we expect some of our Appointed
Representative (AR) firms to resume recruitment earlier than
planned if the current momentum continues, with the Group returning
to previously achieved levels of adviser growth in 2025. In terms
of the addition of new AR firms, activity levels built strongly in
H2 2023, and continue to do so. Our delivery of technology, lead
generation and retention initiatives are proving compelling, and we
expect that to be reflected in our recruitment of new firms this
year.
We continued to invest in our proposition
throughout 2023, to ensure the strongest possible recovery and
continued market share growth in 2024 and beyond. Current trading
is encouraging and in line with expectations.
Peter Brodnicki, CEO of MAB,
commented:
"2023 was an exceptionally
challenging year with consumer confidence heavily impacted,
resulting in many customers deciding to delay their house purchase
or re-financing.
"Against this difficult backdrop I
am very pleased with how MAB has significantly outperformed the
market. To ensure we are in the best possible shape when
market conditions improve, we have continued to invest across the
entire Group to drive lead flow and deliver optimal business and
adviser efficiency. There is a great deal to be positive about, and
our technology developments and lead initiatives, including the
addition of Fluent, have broadened our addressable market and
strengthened our growth plans."
Enquiries:
Mortgage Advice Bureau (Holdings)
plc
+44 (0)1332 525007
Peter Brodnicki, Chief Executive
Officer
Ben Thompson, Deputy Chief Executive
Officer
Lucy Tilley, Chief Financial
Officer
Nominated Adviser and Joint Broker
+44 (0)20 7260 1000
Deutsche Numis
Stephen Westgate / Giles
Rolls
Joint Broker
+44 (0) 20 7418 8900
Peel Hunt LLP
Andrew Buchanan / Mike
Burke
Media Enquiries:
investorrelations@mab.org.uk
The information contained within
this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of
the European Union (Withdrawal) Act 2018 ("UK
MAR").